Celadon earnings fall, but company encouraged by capacity reduction

Celadon earnings fall, but company encouraged by capacity reduction Celadon Group Inc. said it had a $6.6 million profit in the second quarter ending June 30, 70 percent lower than the $22.3 million it earned in the same 2007 period.
   For the quarter, the trucking company's revenue was $154.6 million, 17.4 percent higher than the $131.7 million recorded in the 2007 quarter.    Freight revenue, which excludes fuel surcharges, was up 3.5 percent to $116.7 million.
   Steve Russell, chief executive officer, said the results 'showed marked improvement in operating metrics.
   'We are clearly seeing the results of a meaningful reduction in capacity in the truckload industry. The shrinking of capacity is the result of a substantial number of fleet failures, reductions in the number of trucks run by many larger fleets, and the export of relatively young Class 8 tractors to eastern Europe and elsewhere, and fewer new tractors being built,' he said. 'Although overall freight demand is perhaps up slightly, the impact of the reduction in supply has led to a firming of rates and volumes per available truck. Unless there is a meaningful decline in freight demand, we expect rate increase opportunities will continue.'